Decima conferenza di statistica – ISTAT Roma 15-16 dicembre 2010 1 EU Regional competitiveness The European Commission measures the level of regional competitiveness.

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Presentation transcript:

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness The European Commission measures the level of regional competitiveness Paola Annoni Unit of Econometrics and Applied Statistics European Commission, Joint Research Centre – Ispra

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Joint project between DG JRC (Ispra) and DG Regional Policy (Brussels) Measures the level of competitiveness of EU regions at the NUT2 geographical level RCI 2010 released in September 2010 and will be updated every 2 years

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness The concept is still controversial among the experts Stands between micro (firm) and macro (country) competitiveness …. many analogies BUT with key differences: unsuccessful firms can be expunged from business, underperforming countries cannot competitions among firms is a zero-sum game (mors tua vita mea), the success of one country is generally positive for surrounding ones (spillover effects) Territorial competitiveness, what are you?

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Meyer-Stamer *, 2008, pg.7: We can define (systemic) competitiveness of a territory as the ability of a locality or region to generate high and rising incomes and improve livelihoods of the people living there Territorial competitiveness, what are you? Social and human aspects play a key role * Meyer-Stamer, Jörg, late German Political Scientist

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness The RCI framework Three macro dimensions Basic Efficiency Innovation 11 pillars 69 indicators (out of 81 candidates) Data sources: Eurostat OECD-PISA - OECD-Regional Patent Database European Cluster Observatory World Bank Governance Indicators Ease of Doing Business Flash Eurobarometer

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Five Basic Pillars Institutions (country level) Macro- economic stability (country level) Infra- structure Health Primary and Secondary Education (country level) Corruption Fraud Governance Indicators Ease of doing business Government deficit Saving rate Inflation Long term bond yields Road Rail Air Road fatalities Healthy life expectancy Infant Mortality Cancer and heart disease death rate Suicide death rates OECD PISA for Reading Maths Science

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Basic Pillars Nordic countries score high Macro economic stability low in the south Governance and corruption problematic both east and south

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Three Efficiency Pillars Higher education and training Labour Market EfficiencyMarket Size Graduates Lifelong learning Early school leavers Accessibility to universities Higher education expenditure Labour productivity Employment rate in industry and services Unemployment rate Long-term unemployment Gender balance employment Gender balance unemployment Potential market size expressed in GDP Potential market size expressed in population GDP Compensation of employees Disposable income

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Efficiency Pillars Capital regions consistently score higher than surrounding regions Northwest scores best Southeast scores low

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Three Innovation Pillars Technological readiness Business sophistication Innovation Household access to broadband or internet Individuals who ordered online for private use Household with access to internet Enterprises use of computers, access to internet, website, intranet, internal networks Persons employed by enterprises with an extranet or internet access Employment and GVA in Financial and business services (NACE J_K) FDI intensity Aggregate indicator for strength of regional clusters (European Cluster Observatory) Patents Core Creative Class Knowledge workers Scientific publications R&D Human Resources in Science Technology (HRST) Hight tech and Knowledge- intensive employment High-tech, ICT, Biotechnology inventors

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Innovation Pillars Scores are high in the Nordic countries, Benelux, Germany and France Portugal and Southeastern EU score low

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Steps of the analysis: Assessment of data quality, consistency and adequacy to the final goal (statistical analysis) Data transformation and normalization Data aggregation with different weights to different groups of pillars Robustness analysis

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Weights adjusted according to the level of development of the region (built on WEF-GCI) Three classes: MEDIUM : <75% of EU GDP 2007 (PPP per head) INTERMEDIATE: between 75% and 100% HIGH: >100% Its the threshold defined by EU Commission for eligibility for the Convergence objective

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness RCI 2010 Warsaw Prague Bratislava Vienna Budapest Bucharest Athens Lisboa Madrid Paris Rhône-Alpes Sofia

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Has the blue banana lost a part?

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness A focus on the Italian situation Source: REGIONI D'EUROPA: CHI É PIÙ COMPETITIVO? Paola Annoni, Kornelia Kozovska e Andrea Saltelli Lavoce.info –

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness A focus on the Italian situation – basic pillars RCI 65.3RCI 35.8 RCI 27.7C RCI 58.5

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness A focus on the Italian situation – efficiency pillars RCI 65.3RCI 35.8 RCI 27.7C RCI 58.5

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness A focus on the Italian situation – innovation pillars RCI 65.3RCI 35.8 RCI 27.7C RCI 58.5

Decima conferenza di statistica – ISTAT Roma dicembre EU Regional competitiveness Further analysis (about to be published): Spatial autocorrelation analysis Relation with exogenous variables